The Audit Office has released a report exposing significant violations occurring for years in Trimiklini, involving the diversion of water from the Kouris River to an illegal fish farm facility, which is suspected of having been used to commit fraud.
The Audit Office also found several missteps by authorities who licensed the fish farm and called for disciplinary action against those involved.
According to the report, all competent services (Ministries of Agriculture and Interior, as well as the Deputy Ministry of Tourism) either due to negligence or illegal actions, failed to prevent the violations and restore legality.
As a consequence, a large-scale intervention within the river protection zone occurred, significantly reducing its flow capacity and adversely affecting the vegetation and ecological state of the river. Additionally, there is a potential securing of European subsidies in a manner that involves the possibility of fraud, the report noted.
Furthermore, the actions of the Ministries of Agriculture, Rural Development, and Environment, as well as the Interior, the Deputy Ministry of Tourism, and/or relevant Departments/Directorates, may constitute abuse of power or other offences.
The Audit Office, among other actions, forwarded its report to the Financial Intelligence Unit (MOKAS), the European Union Anti-Fraud Office (OLAF), and the Independent Authority Against Corruption. Simultaneously, it requests disciplinary actions to be investigated for the relevant Departments/Directorates under the Ministries of Agriculture and Interior, and the Deputy Minister of Tourism.
After complaints regarding the diversion of water from the Kouris River and its transfer to illegal fish farm facilities in the Trimiklini community, as well as the misappropriation of state land for private interests by the administrators of the aforementioned fish farm, the Service decided to investigate the matter. The Audit Office also examined the licensing process of another fish farm in Sylikou, which is connected with the owner of the one in Trimiklini.
It is noted that after the discussion on October 10, 2023, in the House Environment Committee, the Audit Office was requested to submit a relevant report. The allegations included claims of money laundering activities, a matter referred to MOKAS, which informed the Audit Office that the matter is under evaluation.
Additionally, the Audit Office intends to refer the case to the Independent Authority Against Corruption to examine whether there was an abuse of power or other corruption offences by any person. With public statements, the Authority has already expressed the intention of a self-initiated investigation into the matter.
The Audit Office confirmed the illegal diversion of water from the Kouris River, the construction and operation of illegal fish farm facilities, a recreational centre, and guest accommodation. Moreover, part of the development is illegally encroaching on state land.
Key findings from the Audit Office’s investigation:
Irrigation reservoir irregularities
An irrigation reservoir, subsidised in 2012 by the Cyprus Agricultural Payments Organisation (KOAP) with €420,000, was constructed on private land in the Sylikou community. This construction violated the terms of the approved building permit of 2009. As a result, it did not qualify as an authorised development during both the subsidy period by KOAP and the five-year contractual commitment of the applicant.
During on-site inspections by KOAP and the Department of Agriculture as the KOAP Contractor, the applicant appears to have concealed the fish farm establishment and operation license obtained from the Department of Fisheries and Marine Research (DFMR), indicating the use of the reservoir for fish farming instead of irrigation. Consequently, the applicant secured European subsidies in a manner that raises the possibility of fraud.
Illegal fisheries development
DFMR, during the initial issuance in 2011 and subsequent modification and renewal in Sylikou, acted outside the institutional framework by not supporting development with a building permit and construction license. Furthermore, the irrigation reservoir and fish farm operate without obtaining a waste disposal license from the Department of Environment.
Lack of enforcement by DFMR
DFMR has been aware since April 2019 that the holder of the above license was operating illegally in the fish farming sector in the Trimiklini community but took no action against them, even though it illegally modified and renewed the license.
Veterinary approvals for fishery products
The Veterinary Services granted veterinary approval to a specific company (in which the administrator of the illegal fish farm is one of the two shareholders) for the operation of a laboratory for fishing products. Additionally, the applicant received a veterinary operating license for aquaculture product production based on the fish farm establishment and operation license, which DFMR illegally issued.
Unauthorised water extraction approval
The Minister of Agriculture, Rural Development, and Environment approved the allocation of a water extraction license for the water supply of the illegal fish farm facilities in Trimiklini in 2017. However, he failed to document the reasons for his decision, violating the provisions of the General Principles of Administrative Law (Law 158(I)/1999).
Illegal use of state land
A first-degree relative of the applicant is using pieces of state land in the Trimiklini community for purposes other than those for which they were leased, forming part of the reported illegal development/business. These areas, along with part of the Kouris River and other properties owned by the two individuals, are involved in the large-scale intervention within the river protection zone, significantly reducing its flow capacity.
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